PRECIOUS METALS

Victoria Gold points to higher output in 2021

Victoria Gold says improved material handling should see its new Eagle gold mine in Canada’s Yukon produce 180,000-200,000 ounces in 2021, its first full year of commercial production.

Staff reporter
 Victoria Gold says it’s set for a successful year at its Eagle mine in the Yukon

Victoria Gold says it’s set for a successful year at its Eagle mine in the Yukon

The guidance is below the 220,000oz estimated in an updated 2019 technical study and follows teething issues, which saw second half guidance in 2020 revised from 85,000-100,000oz to 72,000-77,000oz. 

The company produced 116,644oz in 2020, having declared commercial production on July 1. 

Victoria Gold put all-in sustaining cost guidance for 2021 at US$1,050-$1,175/oz of gold sold, well above the study's forecast $774/oz.

AISC for the second half of 2020 had been revised in November from $950-$1,100/oz to $1,175-$1,275/oz.

President and CEO John McConnell said achieving commercial production and operational ramp-up were major milestones for the company and completed while navigating the additional challenges brought by COVID-19.

"Since January 2021, and coincident with the seasonal no-stacking period, we have completed a significant maintenance and upgrade program within the Eagle crushing circuit and mobile stacking system which will improve material handling," he said.

"With this work complete, we are set up for a successful 2021 and significant increases in gold production, coupled with decreased operating costs and strong free cash flow."

The company is expected to release its 2020 financial results on March 22.

In the past year, its shares (TSXV: VGCX) have ranged from C$4.02 during the March pandemic slump on markets to $21.04 in August, as the gold price reached an all-time high above US$2,000/oz.

They closed down 2.4% yesterday to capitalise Victoria Gold at $683 million (US$538 million).

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.

editions

Mining Journal Intelligence Mining Equities Report 2023

Access an exclusive, inside look on the quarterly mining IPOs and secondary raisings data and mining equities performance tables with an annual Stock Exchange Comparisons supplement.

editions

Mining Journal Intelligence World Risk Report 2023 (feat. MineHutte ratings)

A detailed analysis of mining investment risks across 121 jurisdictions globally, built on 11 ‘hard risk’ metrics and an industrywide survey.

editions

Mining Journal Intelligence Global Leadership Report 2023: Social licence

Gain insights into social licence trends and best practices from interviews with 20+ top mining company executives and an industrywide survey.